Government And DPR Agree On Rupiah Exchange Rate Of Rp. 16,000 At RAPBN 2025

Illustration. (Photo: Doc. Antara)

JAKARTA - The government and the DPR have agreed that the rupiah exchange rate is set at the level of IDR 16,000 in the 2025 State Revenue and Expenditure Budget Draft (RAPBN).

Reported by Antara, Thursday, August 29, at the Commission XI Working Meeting of the Indonesian House of Representatives with the Government and the Governor of Bank Indonesia (BI), Chairman of Commission XI Kahar Muzakir stated that the rupiah exchange rate was agreed to be IDR 16,000 as stated in the presentation.

The rupiah exchange rate is one of the most highlighted macro assumptions. Previously, members of the DPR asked that the rupiah exchange rate target in the 2025 RAPBN be revised because it was not in line with the Government's efforts to strengthen the rupiah exchange rate and the trend of easing monetary policy by 2025.

On the other hand, there is a difference in the rupiah exchange rate target between the Government and BI, where the Government targets a level of Rp. 16,100 in the 2025 RAPBN, while BI provides a range of Rp. 15,300-Rp. 15,700 for next year.

Minister of Finance Sri Mulyani Indrawati explained the Government's target regarding the rupiah exchange rate considering global conditions that are still overshadowed by uncertainty.

Meanwhile, the rupiah exchange rate is strongly influenced by global sentiment and volatility. This uncertainty makes us very careful in designing the state budget," he said.

The rupiah exchange rate target by BI is the fundamental value of the rupiah, which according to BI Governor Perry Warjiyo, has not considered geopolitical conditions.

"If the Minister said that geopolitical conditions could go up and down and therefore there needs to be caution above the fundamental value, it's just a matter of measuring from Rp. 15,700 per US dollar plus how much for the value of prudence," explained Perry.

Sri Mulyani proposed that the rupiah exchange rate be set at the level of IDR 16,000. It aims to provide a better cushion for the current account deficit in 2025 and foreign exchange reserves.

The proposal was then agreed upon by Commission XI and the Governor of BI.

In addition to the rupiah exchange rate, another macro assumption that was also debated was the 10-year State Securities (SBN) interest rate. The government set a level of 7.1 percent in the 2025 RAPBN, while the DPR asked for the figure to be reduced to 6.9 percent.

Through today's meeting, the Government and the DPR agreed that the 10-year SBN interest rate would be at the level of 7 percent.

Thus, the agreement on macro assumptions for next year is 5.2 percent economic growth, 2.5 percent inflation, IDR 16,000 per US dollar in exchange rate, and 10 years 7 percent SBN interest rate.

Then, the development target was agreed with details of open unemployment 4.5-5 percent, poverty 7-8 percent, extreme poverty 0 percent, Gini ratio 0.379-0.382, and human capital index 0.56. This target is the same as stated in the 2025 RAPBN.